$29 Billion for Transit and Transportation

04/14/2014

Today, the Premier of Ontario, the Honourable Kathleen Wynne, announced $29 billion over ten years for transit in the Greater Toronto and Hamilton Area (GTHA) and transportation infrastructure across Ontario.

The Province will create two funds - $15 billion for GTHA transit and $14 billion for transportation in the rest of Ontario - to support investments in priority infrastructure projects across the province such as public transit, roads, bridges, and highways.

AMO supports better transit and raised questions early on regarding equity for communities outside the GTHA and the impact of potential revenue tools on residents and community competitiveness. The Government appears to have heard these concerns and reacted by seeking to ensure transparent revenue allocation for GTHA transit and transportation infrastructure outside of the region. We look forward to seeing how this transparency takes shape.

In announcing the initiative, the Premier said that funding will come from such sources as:

“Repurposing the existing Harmonized Sales Tax (HST) that is charged on the current provincial taxes on gasoline and road diesel.

Redirecting 7.5 cents of the existing gas tax. This would be over and above the permanent two cents that goes directly to municipalities to fund transit infrastructure.

The value resulting from a review of key government assets would go to the proposed Trillium Trust and be directed towards this plan, as would;

Proceeds from the previously announced Green Bonds program.”

Today’s announcement is significant. We will await further details to be announced in the Ontario Budget.

AMO will update members when further details are available post May 1 Budget Day.